profile: or tambo district municipality

PROFILE: OR TAMBO DISTRICT MUNICIPALITY

2

PROFILE: OR TAMBO DISTRICT MUNICIPALITY 3

CONTENT

1. Executive Summary ............................................................................................ 6

2. Introduction: Brief Overview ................................................................................ 8

2.1 Location ............................................................................................................................ 8

2.2 Historical perspective ....................................................................................................... 9

2.3 Spatial Pattern .................................................................................................................. 9

2.4 Land Ownership .............................................................................................................. 15

3. Social Development Profile ............................................................................... 15

3.1 Key Social Demographics ................................................................................................ 15

3.1.1 Population ....................................................................................................................... 15

3.1.2 Gender, Age and Race .................................................................................................... 16

3.1.3 Households ..................................................................................................................... 17

3.2 Health Profile .................................................................................................................. 17

3.3 COVID-19 ................................................................................................................................ 18

3.4 Poverty Dimensions ................................................................................................................ 20

3.4.1 Distribution .......................................................................................................................... 20

3.4.2 Inequality ............................................................................................................................. 21

3.4.3. Unemployment and Employment ....................................................................................... 22

3.4.4 Crime .................................................................................................................................... 23

3.5 Levels of Education ................................................................................................................. 24

4. Drivers of the Economy ........................................................................................ 28

4.1 Economic overview ................................................................................................................. 28

4.2 Primary sector......................................................................................................................... 29

4.3 Secondary sector .................................................................................................................... 30

4.4 Tertiary sector......................................................................................................................... 31

4.5 Informal economy .................................................................................................................. 31

5. Service Delivery .................................................................................................... 32

5.1 Water and Sanitation .............................................................................................................. 32

5.2 Human Settlements ................................................................................................................ 33

5.3 Waste Management ............................................................................................................... 34

5.4 Roads and Transport ............................................................................................................... 35

5.5 Electricity ................................................................................................................................ 36

6. Governance and Management ............................................................................. 37

6.1 Municipality Performance ...................................................................................................... 37

6.2 Municipal Capacity ................................................................................................................. 37

6.3 Traditional Affairs Governance ............................................................................................... 37

7. Projects to diversity and grow people and the economy ....................................... 38

7.1 Catalytic projects ............................................................................................................ 38

7.2 Environmental management and climate change.......................................................... 39

8. Key Recommendations ..................................................................................... 40


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1. Executive Summary

The OR Tambo District Municipality (ORTDM) occupies the eastern

coastal portion of the Province, sharing provincial boundaries with

KwaZulu-Natal and district boundaries with Amatole, Chris Hani,

Ukhahlamba and Alfred Nzo. The District extends over 12,141 km2 and

incorporates a number of the former Transkei magisterial districts into

5 local municipalities. These are King Sabata Dalindyebo, Nyandeni,

Port St Johns, Ingquza Hill and Mhlontlo local municipalities.

The District includes the bulk of the Wild Coast and is home to Luchaba Nature

Reserve, next to Umtata Dam and a string of coastal nature reserves including

Mkambati, Silaka, and Hluleka and indigenous forest reserves including Mt Thesiger,

Mt Sullivan, Ntlopeni, Lotana, Mbotyi, Egosa, Ntsubane as well as a proclaimed marine

reserve, adjacent to Mkambati. OR Tambo includes moderate and high rainfall areas,

principally along its sub-tropical coast, but also in pockets of mountainous areas, and

has a diversity of vegetation, from grasslands and thicket to forests and bushveld. The

District is considered to have the richest natural resources and the most fertile areas

in the country, with good soils and climatic conditions.

OR Tambo District is one of the four Integrated Sustainable Rural Development

Programme nodes in the Eastern Cape. The District has a population of 1,514,306 in

2019 and is the second most populous, after Amathole, accounting for 26.20% of the

Provincial population. However, OR Tambo occupies only 9.52% of provincial land,

making it the one of the most densely populated district, at around 108 people per km2.

Furthermore, women constitute 53% of the population and people aged under 20 years

account for 50%. OR Tambo has a Gini coefficient index of 0.56. The overwhelming

majority 66.5% of the population (using the lower poverty line) is living in poverty with

only 15% in the employment.

OR Tambo District Municipality is classified as a Category C2 municipality, indicating

a largely rural character and low urbanisation rate, as well as limited municipal staff

and budget capacity. All, but KSD, local municipalities are classed as Category B4

rural, reflecting limited institutional capacity and areas characterised by small centres,

limited SMMEs and market opportunities, dependence on public support and LED

activities.


As of 14 June 2020, OR Tambo District accounted for 1516 COVID-19 cases, with 836

recoveries and 47 deaths. 7 quarantine sites has been activated with a total bed

capacity 90 beds. These are all located in Mthatha within the King Sabata Dalindyebo

local municipality. The District has developed a COVID-19 Disaster Management Plan,

which serves to outline the institutional arrangements and other response modalities

that would be utilised to contain the spread on the virus.

In 2018, OR Tambo District had a GDP of R 41.4 billion (up from R 20.2 billion in

2008), which accounted for a contribution of 11% to the Eastern Cape Province GDP

and ranked third relative to the other districts in the province. The community services

sector was the largest accounting for R 14.5 billion or 38.4% of the total GVA of the

district economy. The sector that contributes the second most to the GVA was the

trade sector at 23.0%, followed by the finance sector with 19.5%. The sector that

contributed the least was the mining sector with a contribution of R 77.4 million or

0.20% of the total GVA of the district.

In order to address the short to medium term challenges facing the district and create

conditions for the development of a sustainable regional economy, the following

interventions are proposed: Strengthen safety net for poor and child headed

households, accelerate the delivery of household infrastructure and services, grow

export focussed agricultural and agro-processing sector, strengthen the regional N2

coastal corridor link, activate large scale community-empowering tourism, safeguard

natural resource base and resolve mining vs tourism trade-off, expansion of the

forestry sector, develop oceans corridor, investing in skills development to promote

agriculture and support for Small Business/ Incubator focusing on agriculture.


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2. Introduction: Brief Overview 2.1 Location

2.2

The OR Tambo District Municipality (ORTDM) occupies the eastern

coastal portion of the Eastern Cape Province, bordered by KwaZulu-

Natal and by the Eastern Cape districts of Amathole, Chris Hani,

Ukhahlamba and Alfred Nzo. The District extends over 12,141 km2 and

occupies 9.52% of provincial land. The District includes moderate and

high rainfall areas, along its sub-tropical coast, but also in pockets of

mountainous areas. There is a diversity of vegetation, from

grasslands and thicket to forests and bushveld. The District is

considered to have the richest natural resources and the most fertile

areas in the country, with good soils and climatic conditions.

The District includes the bulk of the Wild Coast and is home to Luchaba Nature

Reserve, next to Umtata Dam and a string of coastal nature reserves including

Mkambati, Silaka, and Hluleka and indigenous forest reserves including Mt Thesiger,

Mt Sullivan, Ntlopeni, Lotana, Mbotyi, Egosa, Ntsubane as well as a proclaimed marine

reserve, adjacent to Mkambati.


2.2 Historical perspective

The OR Tambo District is named after Oliver Reginald Kaizana Tambo (27 October

1917 – 24 April 1993), who was a South African anti-apartheid politician and

revolutionary who served as President of the African National Congress (ANC) from

1967 to 1991. The District covers about 80% of the former Transkei magisterial

districts, the homeland of the Xhosa during the Apartheid era which had Mthatha as

the capital. The District is also host to the village of Mvezo, where the late former

President Nelson Mandela was born into the Madiba clan of the Thembu royal family.

The Nelson Mandela National Museum, situated in Mthatha.

2.3 Spatial Pattern

The OR Tambo District is one of the four Integrated Sustainable Rural Development

Programme (ISRDP) nodes in the Eastern Cape Province. The District has a long-term

vision: the “District Development Plan (DDP) Vision 2030” which the district adopted

in 2017. The DDP has five (5) Key Catalytic Programmes as follows:

1. District entities repositioned to drive Inclusive Economic Development (including

Ntinga OR Tambo Development Agency, PSJ Development Agency and Kei

Fresh)

2. Transformed Land Ownership, Development and Land Management

3. Agricultural Revitalization in the District

4. ICT enabled Socio Economic Development

5. Optimized Management of Water Services (resources and services)

https://en.wikipedia.org/wiki/South_Africa

https://en.wikipedia.org/wiki/Apartheid

https://en.wikipedia.org/wiki/Politician

https://en.wikipedia.org/wiki/President_(corporate_title)

https://en.wikipedia.org/wiki/African_National_Congress


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The OR Tambo District is formed by five local municipalities as discussed below:


King Sabata Dalindyebo (KSD) Local Municipality is named in tribute of the

freedom fighter and King of the Aba Thembu nation who was forced to exile as result

of his resistance to apartheid and the Bantustan mode of governance. He died in exile

in 1986 and reburied at the Great Place of Bumbane outside Mthatha in 1989.

At 3 091 Km2 KSD is the largest of the five municipalities the district accounting for a

quarter of its geographical area. The municipality was formed before the local

government elections in the year 2000, when the Mqanduli and Mthatha Transitional

and Rural Councils were merged. The majority population of the municipality resides

in the rural areas, where they still practice cultural tradition. The municipality has both

an urban and a rural character, including a prominent national urban settlement and

regional economic hub, as well as dispersed village-type rural settlements. Mthatha is

a major transport and regional service centre, dissected by the N2 running southwest

to northeast through the town.

King Sabata Dalindyebo Municipality still retains many of the earliest buildings of the

neoclassical style that was popular during the colonial times. Key towns are Mqanduli

and Mthatha (previously Umtata). Mthatha is the economic centre of the District and

the host to both the Local and District Municipality’s Offices. The main economic

activities are community services (48%), finance (21%), and trade (18%). There is also

a presence of agriculture and forestry activities.

Nyandeni Local Municipality derives its name from the isiXhosa word “inyanda”,

which is a bundle of wood that is carried by Pondo women on their heads for making

a cooking fire. The municipality derives its name from an old story of how the King of

eastern Pondoland, Ndamase, crossed the great Umzimvubu River. It is said that his

subjects were confused on how to cross the river because it was flooded. He thought

of a plan to tie the sticks together and place them on the water like a raft and ride the

“inyanda” across the river. He built his house about 70km from the river, and that place

was called Nyandeni.

The municipality shares boundaries with Mhlontlo to the north, to the east is Port St

Johns, and to the west is King Sabata Dalindyebo, and to the south the Indian Ocean.

At 2 474 km2 the municipality makes up almost a quarter of the district’s geographical

area. It is situated approximately 30km south of Mthatha and 50km north of Port St

Johns, and is bordered by a 20km stretch of the coastal belt on the eastern part and

Umzimvubu River on the western part.

Towns include Libode and Nqeleni. This municipality is predominantly rural with widely

dispersed traditional and village-type settlements. Most of the inhabitants of the


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municipality still rely on subsistence agriculture in areas marked by communal tenure.

The LM is regarded as having considerable agricultural potential, although there has

been limited exploitation of this potential. Key economic activities are community

services (63.4%), trade (16.1%), and finance (10.4%).

”INGQUZA HILL LOCAL MUNICIPALITY DERIVES

ITS NAME FROM THE MOUNTAIN RANGE OF

THE SAME NAME WHICH TRANSVERSES THE

MUNICIPALITY AND WAS THE SCENE OF

THE 1950 – 1962 MPONDO REVOLT.”

Port St Johns Local Municipality derives its name from Portuguese Sao Joao,

presumably named either after a ship which was shipwrecked near Port Edward, 21 of

the 600 soldiers survived eventually finding their way to Mozambique through the

coastline. Prior to shipwrecking the ship has coasted via the area with its mountain

which also coincidentally has an outline of the face of an apostle. The area was settled

in about 1884.

The municipality is bounded by Lusikisiki in the north, Mthatha in the south, and Libode

in the west. At 1 291 km2 It is the smallest of the five municipalities in the district,

making up 11% of its geographical area. It comprises coastal and inland areas that fall

under the jurisdiction of the former Transkei. The seat of the municipality is in the main

town of Port St Johns, which is known for its beautiful beaches and mountainous

terrain, with hills, cliffs and sandy dunes. The town itself is located at the mouth of the

Umzimvubu River, approximately 90km east of Mthatha. The municipality’s beautiful

scenery, its natural vegetation and the pristine beaches referred to above are the main

attractions for tourism. It has land for commercial use and an environmentally-friendly

residential area. There are 1 053 types of plants and 164 plant families found around

Port St Johns. This unique vegetation harbours rare bird species, providing evidence

of the rich biodiversity in Port St Johns. The key economic activities are tourism and

agriculture.


Ingquza Hill Local Municipality derives its name from the mountain range of the

same name which transverses the municipality and was the scene of the 1950 – 1962

Mpondo Revolt.

This municipality was formerly known as Qaukeni and its main towns are Flagstaff and

Lusikisiki. It shares boundaries with Ntabankulu and Mbizana Local Municipalities to

the north, and Port St Johns and the Indian Ocean to the South. Ingquza Hill

municipality is characterized by limited coastal settlements and widely dispersed

settlements in traditional rural villages. The municipal area is furthermore

characterized by large forest areas in close proximity to the coastline, with a total of

ten rivers flowing through it. The Mkambati Nature Reserve is situated within the

coastal zone. The LM is believed to hold significant Tourism, Forestry, and Marine

Aquaculture potential. However, the key economic activities are construction (11.9%),

finance (7.7%), electricity (4.5%), community services (2.5%), agriculture, and

trade/manufacturing.

Mhlontlo LM is named in honour of a chief of the Pondomise people who was stripped

of his chieftainship by the government of the time because the Pondomise people killed

the magistrate of Qumbu.

The municipality lies on the north-east side of the Eastern Cape provincial boundary

alongside the N2 route between Mthatha and Mt Frere, and the R396 between Tsolo

and Maclear. It shares boundaries with the Umzimvubu Local Municipality to the north,

King Sabata Dalindyebo Local Municipality to the south, Nyandeni Local Municipality

to the east, and Elundini Local Municipality to the west. At 2 880 km2 it makes up a

quarter of the district’s geographical area.

This municipality is predominantly rural and hosts Tsolo and Qumbu as local service

centres, and six rural nodes namely; Sulenkama, St Curthberts, Caba, Shawbury and

Langeni Forest. The N2 runs through the municipality from the southwest to the

northeast. The majority of the land is used for agricultural purposes and subsistence

farming, notably for grazing, in areas marked by communal tenure. The area boasts

several tourist attractions including the Tsitsa Falls and Tina Falls, the Tina River

ribbon and the Mabeleni Dam, which is famous for its trout fishing.

Key towns are Qumbu and Tsolo. The latter used to host an agricultural college. The

key economic drivers are wholesale and retail trade (10.8%), agriculture, forestry and

fishing (3.3%)


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The OR Tambo District reviewed its Spatial Development Framework in 2017 and it

identifies the following nodes and corridors:

Nodes:

• District Centre (DC): - Mthatha is the only primary node in the district

• Sub-District Centre (S-DC): Lusikisiki and Port St. Johns are the secondary nodes

of the district.

• Local Centre (LC): Qumbu, Tsolo, Libode, Ngqeleni, Mqanduli and Flagstaff

• Sub-Local Centre (SLC): Tabase, Majola, Zincuka, Gwadana, Bolotwa, Nqadu,

Baziya, Kwaaiman, Mvezo, Qolokweni, Nkozo, Mthontsana, Mpeko, Mqhekezweni,

Mbotyi, Msikaba

• First Order Coastal Nodes: Coffee Bay, Umtata Mouth, Port St Johns

• Second Order Coastal Nodes: Msikaba, Mbotyi, Umngazi Mouth, Mngazana,

Sinangwana, Presley Bay, Lwandile, Hole in the Wall

Activity corridors

• Primary corridor (PC): East London/Mthatha–Kokstad N2 and Railway Corridor

• Mobility routes (MB): N2, R61, Ugie-Langeni Road, R394 and proposed N2 Toll

Road

• Special Routes-Tourism Focus (SP-TF): Wild Coast Meander, Thunga Thunga

Route, Mandela Route, R394- Mthatha via Mqanduli

The O.R Tambo District Local Economic Development Strategy identifies a number

of proposed strategic developments which will effect major structural changes to the

region’s economic and spatial configuration. These major projects emerge from the

National Strategic Integrated Project (SIP 3) interlinked with the Provincial Integrated

Wild Coast Development Programme (IWCDP). The highlighted projects include:

• N2 Wild Coast Toll Road- specifically the new routing between Mthatha and

Port Edward

• Wild Coast Meander- a low-volume road along the Wild Coast linking Port St

Johns, Mthatha Mouth and Coffee Bay

• Wild Coast Special Economic Zone (SEZ) - the SEZ includes the development

of an agro-processing hub/ zone in the vicinity of the Mthatha airport, and a

tourism corridor linking Mvezo, Coffee Bay and Mthatha Mouth.

• Formal establishment of Coffee Bay/ Hole in the Wall as a town.


2.4 Land Ownership

Most of the land in the OR Tambo District is either government-owned or falls under a

Tribal Authority. Legal forms of land tenure in the District include: freehold (mainly

concentrated in the urban centres or townships, certain shops in rural areas, providing

security to the owner), Permission-To- Occupy (mainly in the rural owners where there

is no right of ownership), leasehold and grazing rights on commonage. The District has

initiated the Land and Investment Conference in order to ensure transformation in land

ownership, land management, land security, and to enable communities to benefit from

land development and to secure long-term investments.

3. Social Development Profile 3.1 Key Social Demographics

Population

In 2019, OR Tambo district had a population of 1,514,306 which had

increased from 1,367,868 in 2009 with an average growth rate of 1%.

The district is the most populous district in the Eastern Cape Province

and is ranked the fourth most populous district in South Africa. OR

Tambo’s population is projected to grow by 5% from 1,514,306 in 2019

to 1 583 954 in 2024 and to 4 394 220 in 2050.

Source: IHS Markit Regional eXplorer version 1946

King Sabata Dalindyebo Local Municipality had the highest population with Port St

Johns and Mhlontlo Local Municipalities being the least populated.


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Gender, Age and Race

In 2019, OR Tambo District had significantly more females (53.3%) than males

(46.7%). This is evidence of male migration to other major urban areas in search of

work opportunities. The median age is 19 years (2016 CS) which is lower than the

provincial figure of 21 years and South Africa at 25 years. This indicates a significantly

youthful population.

The largest share of population is within the younger (0-19 years) age categories

representing about 52% of the total population. This suggests that service provision

and social development initiatives targeted at the youth should be an important

consideration for the district. The age categories with the second largest number of

people is the young working age categories (20-49 years) with a total share of 36%,

followed by the older working age (50-59 years) age category with 5%. In this regard,

the provision of employment opportunities is important through to cater for the growing

8.0% 6.0% 4.0% 2.0% 0.0% 2.0% 4.0% 6.0% 8.0%

00-04

05-09

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75+

Population structure 2019

DC15 O.R.Tambo vs. National

DC15O.R.Tambo

Male Female



population. The OR Tambo District’s population consist of 99% African, 0.2% White,

0.5% Coloured and 0.3% Asian people.

3.1.3 Households

In 2016, the OR Tambo District had 314,079 households, which had increased to

354,168 households in 2019.

The average size of a household has remained the same at 4.3 while that of the

province has decreased from 3.9 to 3.7. In OR Tambo District, 14,313 households are

child-headed within the 15-19 age group, with 837 households headed by children in

the 10-14 age group and 57.2% of households were headed by women.

3.2 Health Profile

The leading cause of death for children below the age of 5 years is diarrheal diseases

at 26.3% of total deaths followed by lower respiratory diseases at 17.0% in that age

group. For age group 5-14, the leading cause of death is TB at 13.7% followed by

HIV/AIDS at 11.9%. For the 15-24 and 25-64 age groups is HIV at 16.3% and 27.7%

respectively. The leading cause of death for those above 65 is cerebrovascular disease

which accounts for 15.7% of the deaths. In terms of maternal conditions, the top three

causes of death included indirect maternal diseases which accounted for 29.9% of

deaths followed hypertension in pregnancy at 20.3% and other maternal diseases at

18.4% and respectively.


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In 2015, the total number of people infected with HIV in OR Tambo District was 162

412. The number of people infected increased at an average annual rate of 2.5%

between 2011 and 2015, and in 2015 represented 11.1% of the total OR Tambo

population. The local municipality that is worst affected is the King Sabata Dalindyebo

where the HIV+ number grew at 2.8% average annually from 2011 to 2015.

The OR Tambo District has a total of 163 Health Facilities which include 137 clinics,

10 Community Health Centres (CHC), and 16 Hospitals.

LOCAL

MUNICIPALITY CLINICS CHC/CDC HOSPITALS

Ingquza Hill 21 0 2

Port St Johns 18 2 2

Nyandeni 28 1 2

Mhlontlo 25 2 3

King Sabata

Dalindyebo 45 5 7

Total for OR Tambo 137 10 16

Source: OR Tambo 2019/20 District Health Plan (Department of Health)

3.3 COVID-19

The Eastern Cape Province has seen a surge number of Covid-19 cases since the

outbreak of the pandemic. As of 14 June 2020, the Province currently has 10 027

confirmed cases and OR Tambo District accounts for 1516 cases, with 836 recoveries

and 47 deaths. The Council for Scientific and Industrial Research (CSIR) in

collaboration with Albert Luthuli Centre for Responsible leadership have developed a

set of COVID-19 Vulnerability Indicators using available data and knowledge. It

identifies vulnerabilities present in communities and identifying areas in need of

targeted coordinated interventions and early response. The purpose of the indicators


is intended to support the early prevention/mitigation and preparedness phase of the

disaster management cycle and informing disaster management decision making. It is

not based on epidemiological modelling but a response to highlighting intervention

areas due to underlying situation. The composition of the index follows two main

factors, namely: transmission potential and health susceptibility. Transmission

potential areas identify areas that prevent social distancing to be practiced and where

limitations of practicing good basic hygiene. The health susceptibility index denotes

areas where large number of people are potential more susceptible to being adversely

affected by COVID-10 due to factors such as age and underlying health conditions.

The ORT vulnerability profile is presented below. The map shows low vulnerability

areas (blue dotted areas) versus areas with higher vulnerability (red dotted areas).

Relative population density, poverty and access to basic services such as water and

sanitation are key determinants of vulnerability. With the added burden of b eing a

transit town, Umtata displays more extreme vulnerability whilst Nyandeni and Port St

Johns show high vuulnerabilities. Area specific live GIS vunerability maps are available

curtosy of CSIR at:

https://pta-gis-2-web1.csir.co.za/portal2/apps/opsdashboard/#/390a74fb10844c7a85396e60555a866d

https://pta-gis-2-web1.csir.co.za/portal2/apps/opsdashboard/#/390a74fb10844c7a85396e60555a866d


20

The District has developed a COVID-19 Disaster Management Plan, which serves to

outline the institutional arrangements and other response modalities that would be

utilised by the District in its effort to contain the spread on the virus. Accordingly, the

District has established the relevant structures at political and technical level which

include the District Command Council and Command Centre.

The OR Tambo District has a total of 39 quarantine facilities identified with a total bed

capacity of 1360. Out of the 39 facilities, 7 of these facilities has been activated with a

total bed capacity 90 beds. These are all located in Mthatha within the King Sabata

Dalindyebo local municipality.

LOCAL MUNICIPALITY NAME OF FACILITY PRIVATE

OR STATE OWNED

BEDS

AVAILABLE STATUS

King Sabata Dalindyebo La Maison Guest House Private 15 Activated

King Sabata Dalindyebo Real Vision Guest House Private 9 Activated

King Sabata Dalindyebo Twin Lodge Guest House Private 18 Activated

King Sabata Dalindyebo Mthatha Rest Lodge Private 10 Activated

King Sabata Dalindyebo Lat Grande Lodge Private 12 Activated

King Sabata Dalindyebo Sikhumbule Nathi Guest House Private 11 Activated

King Sabata Dalindyebo Idwala Lam Guest House Private 15 Activated

TOTAL FOR

OR TAMBO 90

3.4 Poverty Dimensions

3.4.1 Distribution

In 2019, there were 1,006,431 people living in poverty, using the lower poverty line

definition, across the OR Tambo District which accounts for 66.5% of the total

population. This is significantly higher percentage of the population when compared to

the Eastern Cape provincial figure which was at 54.3%. OR Tambo was ranked fourth

in terms of the poorest districts in the country. 3 out of the 10 poorest local

municipalities in the country are in OR Tambo District which are Port St Johns (73.5%),

Nyandeni (72.5%) and Ingquza Hill (72.3%).

According to the 2016 Community Survey, 18 % of households in OR Tambo skipped

a meal in the last 12 months and 27 % of households ran out of money to buy food. As

a consequence of the poverty levels, there is a cumulative total of 683,584 grant

dependents in the district. The number of beneficiaries per grant type is indicated in

the table below:


GRANT TYPE TOTAL BENEFICIARIES

Care Dependency Grant 5,206

Child Support Grant 510,208

Combination (Care Dependency and Child Support) 1,099

Disability Grant 33,619

Foster Care Grant 19,585

Grant-In-Aid 5,532

Old Age Grant 108,335

TOTAL 683,584

Source: SASSA (as of 30 April 2020)

3.4.2 Inequality

OR Tambo District has a Gini coefficient of 0.56, which is below the provincial index

value of 0.62. In terms of the Gini coefficient for each of the local municipalities within

the District, King Sabata Dalindyebo has the highest Gini coefficient, with an index

value of 0.58. The lowest Gini coefficient can be observed in Nyandeni with an index

value of 0.51.

In OR Tambo District, an estimated population of 400 941 earn an amount ranging

from R1-400 per month which is the highest form of income followed by income levels

of R801-R1,600 income per month. An estimated 599 829 of the population within

0.50

0.52

0.54

0.56

0.58

0.60

0.62

0.64

0.66

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Gini coefficient

O.R.Tambo, Eastern Cape and National Total, 2008-2018

O.R.Tambo Eastern Cape National Total



22

receive no income at all. The average annual household income was R14 600, which

is significantly lower than the national average at R29 400.

3.4.3. Unemployment and Employment

In 2018, there were 221 000 people employed in the District which is 15.38% of the

total employment in Eastern Cape, 1.38% of total employment in South Africa.

Employment increased annually at an average rate of 0.45% from 2008 to 2018.

The economic sectors that recorded the largest number of employment in 2018 were

the community services sector with a total of 74 000 employed people or 33.4% of total

employment in the district. The trade sector with a total of 54 400 (24.6%) employed

1 Agriculture

2 Mining

3 Manufacturing

4 Electricity

5 Construction6 Trade

7 Transport

8 Finance

9 Community

services

Households

Total Employment Composition O.R.Tambo, 2018



the second highest number of people. The mining sector with 281 (0.1%) and the

electricity sector with 321 (0.1%) employed the least number of people.

In 2018, the unemployment rate in OR Tambo (based on the official definition of

unemployment) was 37.71%. The unemployment rate in the district was higher than

that of Eastern Cape.

“IN 2018, THERE WERE 221 000

PEOPLE EMPLOYED IN THE DISTRICT WHICH

IS 15.38% OF THE TOTAL EMPLOYMENT

IN EASTERN CAPE”

3.4.4 Crime

The IHS Composite Crime Index makes use of the official SAPS data, which is reported

in 27 crime categories (ranging from murder to crime injuries). These 27 categories

are divided into two groups according to the nature of the crime: i.e. violent crimes and

property crimes.

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of unemployed & Unemployment rate

O.R.Tambo, 2008-2018

Number of unemployed people Unemployment rate



24

For the period 2007/2008 to 2017/2018, the overall crime in OR Tambo District has

decreased at an average annual rate of 1.79%. Violent crime decreased by 1.96%

since 2007/2008, while property crimes decreased by 0.22% between the 2007/2008

and 2017/2018 financial years. The ratio of police stations to population is low,

although average geographical coverage is comparatively high.

3.5 Levels of Education

Within OR Tambo District, the number of people without any schooling decreased from

2008 to 2018 with an average annual rate of -3.19%, while the number of people within

the 'matric only' category, increased from 80,100 to 124,000. The number of people

with 'matric and a certificate/diploma' increased with an average annual rate of 4.94%,

with the number of people with a 'matric and a Bachelor's' degree increasing with an

average annual rate of 5.11%. Overall improvement in the level of education is visible

with an increase in the number of people with 'matric' or higher education.

0

10

20

30

40

50

60

70

80

90

100

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018

Overall, Violent and Property Crime Index O.R.Tambo, 2007/2008-2017/2018

OverallCrime Index Violent Crime Index Property Crime Index



OR Tambo District has a total of 352 existing primary schools whereas the total

required is 324 schools. Similarly, OR Tambo district has a total of 152 existing schools

and a total of 203 schools required. This analysis indicates the major disparities in

terms of the supply of schools versus the demands.

MUNICIPALITY EXISTING PRIMARY SCHOOLS

REQUIRED PRIMARY SCHOOLS

EXISTING SECONDARY SCHOOLS

REQUIRED SECONDARY SCHOOLS

Ingquza Hill 66 61 22 38

King Sabata Dalindyebo 80 33 58 21

Mhlontlo 75 94 29 59

Nyandeni 71 38 30 24

Port St Johns 60 98 13 61

TOTAL FOR OR TAMBO

352 324 152 203

The OR Tambo District also has 2 TVET colleges with a total of 5 campuses. In total

there are Courses offered include Engineering studies, Business Management,

Financial Management, Public management, Tourism and Hospitality studies.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Highest level of education: age 15+ O.R.Tambo, 2008-2018

Matric &

Postgrad

degreeMatric &

Bachelors

degreeMatric &

certificate /

diplomaMatric only

Certificate /

diploma

without matricGrade 10-11

Grade 7-9



26

NAME OF INSTITUTION CAMPUSES TOTAL NUMBER OF

STUDENTS ENROLLED

Ingwe TVET Ngqungqushe 5016

King Sabata Dalindyebo TVET

Libode 878

Mapuzi 493

Mthatha 7456

Ntabozuku 820

Walter Sisulu University Zamukulungisa 14 892

TOTAL 29 555

“OR TAMBO DISTRICT HAS A TOTAL OF 352

EXISTING PRIMARY SCHOOLS WHEREAS THE

TOTAL REQUIRED IS 324 SCHOOLS.”


28

4. 4. Drivers of the Economy 4.1 Economic overview

In 2018, OR Tambo District had a GDP of R 41.4 billion (up from

R 20.2 billion in 2008), which accounted for a contribution of 11% to

the Eastern Cape Province GDP and ranked third relative to the other

districts in the province. In 2018, the OR Tambo District achieved a

negative annual growth rate of -1.15% compared to the Eastern Cape

Province's 0.78%.

In 2018, the community services sector was the largest accounting for R 14.5 billion or

38.4% of the total GVA of the district economy. The sector that contributes the second

most to the GVA was the trade sector at 23.0%, followed by the finance sector with

19.5%. The sector that contributed the least was the mining sector with a contribution

of R 77.4 million or 0.20% of the total GVA of the district.

“IN 2018, THE COMMUNITY SERVICES SECTOR

WAS THE LARGEST ACCOUNTING FOR

R 14.5 BILLION OR 38.4% OF THE TOTAL GVA

OF THE DISTRICT ECONOMY.”

O.R.Tambo

Nelson Mandela

Bay

Buffalo City

Sarah BaartmanAmatole

Chris

Hani

Joe Gqabi

Alfred Nzo

Gross Domestic Product (GDP)

Eastern Cape Province, 2018



OR Tambo Eastern

Cape National

Total OR Tambo as % of province

OR Tambo as % of national

Agriculture 0.5 6.7 106.1 6.8% 0.43%

Mining 0.1 0.4 350.9 17.4% 0.02%

Manufacturing 1.9 43.6 572.9 4.3% 0.33%

Electricity 1.4 9.0 166.0 15.6% 0.84%

Construction 1.2 13.3 170.3 9.1% 0.71%

Trade 8.7 67.9 652.7 12.8% 1.33%

Transport 2.2 30.3 426.7 7.4% 0.53%

Finance 7.4 61.4 854.4 12.0% 0.86%

Community services 14.5 102.7 1,041.3 14.1% 1.39%

Total Industries 37.8 335.3 4,341.3 11.3% 0.87%

The OR Tambo District has identified the following five (5) priority areas as key

contributors to the economy and job creation in partnerships with the private sector.

These are Green Economy, Agriculture, Mining, Manufacturing and Tourism.

4.2 Primary sector

The primary sector consists of two broad economic sectors namely the mining and the

agricultural sector.

Between 2008 and 2018, the agriculture sector experienced the highest positive

growth in 2017 with an average growth rate of 13.2%. The mining sector reached its

-20%

-15%

-10%

-5%

0%

5%

10%

15%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Gross value added (GVA) by primary sector O.R.Tambo, 2008-2018

Agriculture Mining



30

highest point of growth of 5.2% in 2014. The agricultural sector experienced the lowest

growth for the period during 2016 at -14.7%, while the mining sector reaching its lowest

point of growth in 2009 at -12.8%.

In OR Tambo District, the agriculture sector has been identified as the sector with the

highest growth potential up to 2023, but prone to very high volatility because of

uncertain weather conditions, pests and other natural causes.

4.3 Secondary sector

The secondary sector consists of three broad economic sectors namely the

manufacturing, electricity and the construction sector.

Between 2008 and 2018, the manufacturing sector experienced the highest positive

growth in 2010 with a growth rate of 1.7%. The construction sector reached its highest

growth in 2009 at 8.7%. The manufacturing sector experienced its lowest growth in

2018 of -9.8%, while construction sector reached its lowest point of growth in 2018 with

-3.0% growth rate. The electricity sector experienced the highest growth in 2017 at

39.7%, while it recorded the lowest growth of -26.7% in 2018.

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Gross value added (GVA) by secondary sector O.R.Tambo, 2008-2018

Manufacturing Electricity Construction



4.4 Tertiary sector

The tertiary sector consists of four broad economic sectors namely the trade, transport,

finance and the community services sector.

The trade sector experienced the highest positive growth in 2008 with a growth rate of

3.1%. The transport sector reached its highest point of growth in 2014 at 1.8%. The

finance sector experienced the highest growth rate in 2008 when it grew by 5.4% and

recorded the lowest growth rate in 2009 at -1.6%. The Trade sector also had the lowest

growth rate in 2009 at -3.6%. The community services sector, which largely consists

of government, experienced its highest positive growth in 2008 with 3.6% and the

lowest growth rate in 2009 with -0.7%.

4.5 Informal economy

The number of people employed in the informal sector counted 56 000 or 25.28% of

the total employment. Informal employment in OR Tambo decreased from 58 200 in

2008 to an estimated 56 000 in 2018.

“THE TRADE SECTOR EXPERIENCED THE

HIGHEST POSITIVE GROWTH IN 2008 WITH

A GROWTH RATE OF 3.1%.”

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Gross value added (GVA) by tertiary sector

O.R.Tambo, 2008-2018

Trade Transport Finance Community services



32

In 2018, the Trade sector recorded the highest number of informally employed, with a

total of 22 100 employees or 39.52% of the total informal employment. This can be

expected as the barriers to enter the Trade sector in terms of capital and skills required

is less than with most of the other sectors. The Manufacturing sector has the lowest

informal employment with 2 250 and only contributes 4.03% to total informal

employment. The OR Tambo District Municipality has prioritized the promotion and

support to informal traders, co-operatives and SMME’s through capacity building and

supply of material and equipment within all the local municipalities.

5. Service Delivery 5.1 Water and Sanitation

OR Tambo District had a total number of 37 900 (or 10.92%)

households with piped water inside the dwelling, a total of 41 000

(11.84%) households had piped water inside the yard and a total

number of 215 000 (61.97%) households had no formal piped water.

The local municipalities with the highest number of households with

piped water inside the dwelling is King Sabata Dalindyebo with 24 800

or a share of 65.39% of the households. Port St Johns had the lowest

number of households with piped water inside the dwelling with a

total of 2 010 or a share of 5.30% of the total households.

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Formal and informal employment by sector

O.R.Tambo, 2018

Formal employment Informal employment



Piped water

inside

dwelling

Piped

water in

yard

Communal

piped water:

less than 200m

from dwelling

(At RDP-level)

Communal

piped water:

more than

200m from

dwelling

(Below RDP)

No formal

piped water Total

Ingquza Hill 2,210 2,580 3,890 1,700 55,100 65,400

Port St Johns 2,010 1,570 3,600 571 28,300 36,000

Nyandeni 6,200 2,860 11,700 3,080 47,700 71,600

Mhlontlo 2,680 4,470 9,780 3,640 26,800 47,400

King Sabata

Dalindyebo 24,800 29,600 10,500 4,420 57,000 126,000

TOTAL

ORTAMBO 37,867 41,042 39,555 13,406 214,875 346,745

OR Tambo District had a total number of 67 700 flush toilets (19.54%), 204 000

Ventilation Improved Pit (VIP) (58.79%) and 49 600 (14.30%) of total households pit

toilets. The local municipality with the highest number of flush toilets is King Sabata

Dalindyebo with 38 900 or a share of 57.41%. The local municipality with the lowest

number of flush toilets is Mhlontlo Local Municipality with a total of 5 080 or 7.50% of

the total flush toilets in the District.

Flush toilet

Ventilation

Improved Pit

(VIP)

Pit toilet Bucket

system No toilet Total

Ingquza Hill 7,750 42,600 11,000 895 3,140 65,400

Port St Johns 8,930 16,100 5,480 459 5,030 36,000

Nyandeni 7,090 52,200 7,370 239 4,700 71,600

Mhlontlo 5,080 28,100 10,400 191 3,660 47,400

King Sabata

Dalindyebo 38,900 64,900 15,300 575 6,690 126,000

TOTAL

OR TAMBO 67,742 203,854 49,575 2,359 23,216 346,745

5.2 Human Settlements

In OR Tambo District, 1.3% of the households are informal dwellings which is lower

than the provincial figure of 7.3% and 33% are formal dwellings which is significantly

lower than the provincial figure of 56%. A further 54% of the dwellings are traditional

dwellings. 78.9% of the houses are fully owned or paid off which is higher than the

provincial figure of 69.1%. There are 9% of the dwellings where people are renting.


34

The local municipality with the highest number of very formal dwelling units is the King

Sabata Dalindyebo Local Municipality with 16 200 or a share of 88.53%. The local

municipality with the lowest number of very formal dwelling units is the Nyandeni with

a total of 380 or a share of 2.08% of the total very formal dwelling units in the district.

Very Formal Formal Informal Traditional Other

dwelling type Total

Ingquza Hill 628 26,300 11,400 26,700 394 65,400

Port St Johns 456 10,300 6,690 18,600 43 36,000

Nyandeni 380 24,800 12,800 33,200 386 71,600

Mhlontlo 634 16,800 7,670 22,200 143 47,400

King Sabata

Dalindyebo 16,200 55,800 19,500 34,000 861 126,000

TOTAL

OR TAMBO 18,286 133,914 58,000 134,717 1,828 346,745

The OR Tambo District has experienced a number of disasters in the recent past and

the demand for temporary shelters and permanent housing has increased rapidly.

There is need for an integrated human settlement plan to address the housing

backlogs, informal settlements, eradication of mud houses and rectification of defective

structures.

“THE DISTRICT HAS EXPERIENCED A NUMBER

OF DISASTERS AND THE DEMAND FOR

TEMPORARY SHELTERS AND PERMANENT

HOUSING HAS INCREASED RAPIDLY.”

5.3 Waste Management

OR Tambo District had a total number of 41 200 (11.89%) households which had their

refuse removed weekly by the authority, a total of 3 240 (0.93%) households had their

refuse removed less often than weekly by the authority and a total number of 266 000

(76.64%) households which had to remove their refuse personally (own dump). The

local municipality with the highest number of households where the refuse is removed

weekly by the authority is King Sabata Dalindyebo with 33 400 or a share of 81.12%.

The local municipality with the lowest number of households where the refuse is

removed weekly by the authority is Port St Johns Local Municipality with a total of 847

or a share of 2.05%.


Removed

weekly by

authority

Removed

less often

than weekly

by authority

Removed by

community

members

Personal

removal

(own dump)

No refuse

removal Total

Ingquza Hill 3,140 548 1,450 55,000 5,280 65,400

Port St Johns 847 193 732 29,100 5,180 36,000

Nyandeni 1,620 348 1,050 61,400 7,150 71,600

Mhlontlo 2,180 477 1,810 37,100 5,820 47,400

King Sabata

Dalindyebo 33,400 1,670 3,030 83,100 5,020 126,000

TOTAL

OR TAMBO 41,229 3,235 8,067 265,746 28,467 346,745

Proper prioritization for the development and management of waste is required within

the district. The health and pollution risk within the district are very high both within the

urban centres and the rural communities. Poor operation of licenced waste sites,

burning of waste causing health risks, waste management is not seen as a priority

issue, poor operational and financial planning and lack of enforcement.

5.4 Roads and Transport

The road network in the OR Tambo District include the N2 national road which

transects the district from the south west, passing through Mthatha and Qumbu to the

Mt Ayliff region in the north west of the district. Regional roads include the R61, which

comes from Engcobo into OR Tambo District, and passes Mthatha, through Libode,

Port St Johns, Lusikisiki and Flagstaff. The other regional road, is the R396 which turns

off the N2 through Tsolo.

The following table indicates the road categories and number of kilometers within the

district:

ROAD CATEGORY NUMBER OF KMS IN THE

DISTRICT RESPONSIBLE AUTHORITY

National 136 National Roads Agency

Provincial 497 Provincial Dept. of Roads and Public Woks

District 2, 792 Regional Dept. of Roads and Public Works

Access Roads 2, 957 District and Local Municipality

Street and Internal Unconfirmed Local Municipalities

The OR Tambo District is working with the Department of Roads and Transport, have

developed an Integrated Transport Plan (ITP) for the District. In terms of the approved

District ITP, a number of the national, provincial and district roads are currently being

upgraded or undergoing major refurbishment. This include the N2 road from East


36

London to Durban, and the R61 from Queenstown to Port St Johns. The focus is on

roads that connect the province to national centres, roads that connects cities, towns

and villages to each other, roads to public facilities, roads that may unlock economic

opportunities (Industrial estates, tourism nodes and intensive agricultural nodes) as

well as roads to public facilities and tourism destinations.

In OR Tambo District, there is the Kei Rail initiative, which is aimed at revitalizing the

rail line from Mthatha to East London. Substantial investment has been made in re-

commissioning this rail line. It is envisaged that this rail line will be the central economic

driver underpinning the Kei Development Corridor.

The Mthatha Airport is another key transport facility which is fully functional and

compliant with Civil Aviation Authority (CAA) safety standards. The airport currently

has a 2 kilometre runway and there is currently a process to upgrade airport.

5.5 Electricity

OR Tambo District Municipality had a total number of 48 800 (14.08%) households

with electricity for lighting only, a total of 250 000 (72.07%) households had electricity

for lighting and other purposes and a total number of 48 000 (13.85%) households did

not use electricity.

Electricity for

lighting only

Electricity for

lighting and

other purposes

Not using

electricity Total

Ingquza Hill 13,900 41,900 9,630 65,400

Port St Johns 9,900 21,200 4,970 36,000

Nyandeni 11,300 50,200 10,000 71,600

Mhlontlo 6,170 34,900 6,320 47,400

King Sabata Dalindyebo 7,520 102,000 17,100 126,000

TOTAL

OR TAMBO 48,820 249,897 48,028 346,745

The local municipality with the highest number of households with electricity for lighting

and other purposes is King Sabata Dalindyebo with 102 000 or a share of 40.70% of

the households with electricity for lighting and other purposes. The local municipality

with the lowest number of households with electricity for lighting and other purposes is

Port St Johns Local Municipality with a total of 21 200 or a share of 8.47%.


6. Governance and Management 6.1 Municipality Performance

The OR Tambo District Municipality obtained a Qualified Audit

Opinion in the 2017/18 Financial Year. The table below indicates the

audit outcomes across the district:

FINANCIAL YEAR 2014/2015 2015/2016 2016/2017 2017/2018

OR Tambo Qualified Qualified Qualified Qualified

Ingquza Hill Clean Audit Clean Audit Clean Audit Qualified

Port St Johns Disclaimer Qualified Qualified Qualified

Nyandeni Unqualified Clean Audit Unqualified Unqualified

Mhlontlo Qualified Unqualified Unqualified Unqualified

King Sabata

Dalindyebo Qualified Qualified Unqualified Qualified

6.2 Municipal Capacity

According to the 2019/20 Integrated Development Plan of the OR Tambo District, there

is a total of 2352 posts in the organogram. At senior management level, all posts are

filled. However, there is a 53% vacancy rate below the senior management level as

indicated in the table below:

POSTS AS PER

ORGANOGRAM FILLED VACANT

VACANCY

RATE FEMALES MALES

Senior Management 12 0 0 6 6

Below Senior Management 1249 1103 53% 506 743

TOTAL 1261 1103 53% 512 749

TOTAL NUMBER OF POSTS

AS PER ORGANOGRAM 2352

6.3 Traditional Affairs Governance

OR Tambo District Municipality has a total number of 74 Traditional Leaders within the

region and there are 283 headsmen and women. Twelve (12) Traditional Leaders are

participating in the Council of OR Tambo ORTDM as per Section 82 of the Local

Government Municipal Structures Act 117 of 1998, with the view to accelerate service

delivery.


38

7. Projects to diversity and grow people and the economy

7.1 Catalytic projects

PROPOSED PROGRAMME

PROJECT STATUS RESPONSIBLE DEPARTMENT

N2 Wild Coast Highway

The overall project entails the re-construction of the 410km stretch of the N2 between East London and the Mtamvuna River on the Eastern Cape / Kwazulu-Natal border, including a 112km Greenfields section between Port St Johns and the Mtamvuna River. Project in the construction phase, with a focus on the Mtentu & Msikaba mega bridges

Transport

Mthatha Airport Upgrade

Several upgrade projects has been completed, including re-construction of the runway, installation of runway lighting, and completion of a new/ upgraded terminal building.

Transport

Mzimvubu Multipurpose Project

Feasibility study completed in 2014, EIA approved in 2015. No budget allocated. Project being re-conceptualized

DWS

Wild Coast Meander road

The development of the wild coast meander involves extensive upgrade and improvement to the existing provincial road network from Port St Johns to Kei-Mouth. Once completed, it is intended that the route will provide improved linkages between the coastal nodes east of Kei Mouth. Attending to matters raised from NT arising from BFI (Budget Facility for Infrastructure) application.

Transport

Wild Coast SEZ

A Wild Coast Development Zone has already been established and aims at significantly improving agriculture, agro-industrial development, eco-tourism, nature conservation and small-town revitalisation for towns like Port St Johns, Mbizana and Coffee Bay. Feasibility study and Business Plan completed. A 50-year lease on land next to the airport has been signed. Four investors have already indicated their interest. Not yet promulgated as an SED by DTI

DEDEAT

Zalu Dam - Lusikisiki Regional Water Scheme

Planning and designs for the proposed Zalu Dam were completed by the DWS in 2014. Funding for the dam construction is still to be committed by the DWS. The ORT DM has in the meantime commissioned a study for the upgrading of the existing Lusikisiki Water Treatment Works and related infrastructure with a view to argument the water supply to Lusikisiki Town and four wards in the short-term.

DWS


7.2 Environmental management and climate change

The OR Tambo district has a distinct advantage of being a region with substantial water

resources. The district lies within the Umzimvubu, Keiskamma Water Management

Area and the Mvoti-Umzimvubu Water Management Area. These are catchment areas

with excess runoff of water, which means development of these water resources is

possible.

However, there are a number of conservation areas within the OR Tambo District

Municipal area. Provincial nature reserves include Silaka Nature Reserve near Port St

Johns, Hluleka Nature Reserve near Presley Bay, Luchaba Nature Reserve next to

Umtata Dam and Mkambati Nature Reserve on the northern Pondoland Coast. There

are a large number of indigenous forest reserves along the coast. Some of the larger

ones on the Pondoland Coast are Mount Thesiger, Mount Sullivan, Ntlopeni, Lotana,

Mbotyi, Egosa and Ntsubane. There is also a proclaimed marine reserve adjacent to

the Mkambati Nature Reserve.

Climate change already causes and will continue to cause a number of challenges for

OR Tambo District Municipality, linked to impacts such as increased temperatures,

extreme weather events (e.g. flooding and drought), sea level rise and climate

variability. To respond to these changes OR Tambo District Municipality has initiated

and developed the Municipal Climate Change Strategy and Action Plan. This is a

phased programme, which has focused on climate change adaptation and enhancing

the Municipality’s ability to cope with climate change impacts. The likely climate change

impacts have been assessed and plans, programmes and projects developed to assist

the Municipality in dealing with these impacts.

“THE OR TAMBO DISTRICT HAS A DISTINCT

ADVANTAGE OF BEING A REGION WITH

SUBSTANTIAL WATER RESOURCES.”


40

8. Key Recommendations In order to address the short to medium term challenges facing the

district and create conditions for the development of a sustainable

regional economy, the following interventions are proposed:

a. Strengthen safety net for poor and child headed households

Given the high levels of poverty as well as high numbers of child and women headed

households in the district, there is a need for a special programmes to address these

challenges. In this regard, there is a need to:

• Update and agree on database of all poor, female and child headed households.

• Extend the social package (social grants, free basic services) to child and

female headed households.

• Implement Child Care Programmes.

b. Accelerate the delivery of household infrastructure and services

According to StatsSA (CS 2016), OR Tambo is one of the 10 districts with the lowest

infrastructure quality index with high backlogs with regards to basic services. In this

regard, there is a need to:

• Accelerate basic service provision to households.

• Fast track completion of bulk and link projects.

c. Grow export focussed agricultural and agro-processing sector

The Agricultural sector has been identified as the sector with the highest growth

potential, but prone to very high volatility as a result of uncertain weather conditions,

pests and other natural causes. To further develop and increase the contribution of

Agriculture to the GVA of the district, there is a need to:

• Undertake Export opportunity mapping

• Mobilise small farmers into export agricultural value chain

• Establish incubation hubs and processing facilities linked into export value chain

d. Strengthen the regional N2 coastal corridor link

The Draft National Spatial Development Framework (NSDF) has identified the N2 link

as a corridor that can catalyse the development of the agricultural tourism and

industrial development. This will involve:

• Accelerating the completion of the N2 link

• Completing the spatial corridor plan for development and management of

coastal link

• Completing robust community consultations on inclusive corridor development


e. Activate large scale community-empowering tourism

The District is endowed with several tourism destinations such as Port St Johns,

Lusikisiki, Coffee Bay, Qunu, Mthatha and Mhlontlo. The District encapsulates a large

portion of the Wild Coast belt and is home to some pristine nature reserves. In order

to maximum on the tourism potential, there is a need to:

• Finalise tourism plan and identification of tourism business opportunities

• Develop large pool of local tourism practitioners and operators

• Package and deliver tourism training and qualifications

• Unlock special funding and finance for community scale tour operators

f. Safeguard natural resource base and resolve mining vs tourism trade-off

The Provincial Spatial Development Framework provides for the safeguarding of all-

natural resources across the district and province. In this regard, there is a need to:

• Update cost-benefit studies.

• Undertake open consultative process to interrogate mining vs tourism

feasibilities and cost-benefit analysis.

g. Expansion of the forestry sector

The District recognises that unlocking the potential in forestry and agriculture in the

District can lead to job growth, poverty reduction and sustainable livelihoods. Forestry

initiatives encompass both commercialised forestry operations, involving plantations

for timber. The proposals for forestry expansion include:

• Identify areas for regional commercial forestry expansion and afforestation of

State Forests especially in Mhlontlo, Nyandeni and Ngquza Hill LM

• Afforestation through creating forest pockets in each municipality in order to

provide wood energy to rural areas

h. Develop oceans corridor

The proposal entails developing a regional road that will run along the coast in an

attempt to connect the proposed small rural beach towns to form some sort of string of

beads to ensure connectivity and accessibility to these towns. This will contribute to

tourism expansion and economic expansion

i. Investing in skills development to promote agriculture

In order to realise the agriculture potential in the region, there is a need to build more

agricultural colleges to enable communities to acquire skills in subsistence and small


42

scale maize, vegetable, fruit, and tea production; and small scale livestock rearing

(cattle, sheep and goats); forestry and aquaculture.

j. Support for Small Business/ Incubator focusing on agriculture

Through SEDA there is an MOU that was signed in August 2018 with Ntinga

Development Agency to support SMMEs from the District to have products of scale

and quality to supply Kei Fresh Produce Market, Umzikantu Red Meat Abattoir and

Adam Kok Farms. The Incubator will be based in Ingwe TVET College based in

Lusikisiki. This incubator will serve both the students who are being trained in the

college with business skills so that they can be able to start and run their businesses

rather than looking for jobs.

k. Expansion of Furniture tech incubator to Lusikisiki

The department already has two incubators in Umthatha that are focusing on furniture

manufacturing (Furntech) and the other focusing on construction. The Furntech

incubator will be expanded to Lusikisiki to support the entrepreneurs who come from

Lusikisiki and surrounding areas. The expansion of timber production in the areas will

also feed in into this incubator and ensure processing of timber locally.

profile: or tambo district municipality

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